August 21 (Renewables Now) - Brazil's Petroleum, Natural Gas and Biofuels Agency (ANP) announced on Tuesday that almost 1.14 billion litres (301.15m gallons) have been contracted in the 68th biodiesel auction.
The average price of BRL 2.857 per litre achieved in the tender resulted in a total contract value of a little over BRL 3.25 billion (USD 804m/EUR 724m). In all, 38 producers offered some 1.14 billion litres, of which 99.74% had the Social Fuel Seal, awarded under a government incentive to source raw materials from small farms.
The auction had two bidding stages. Total of 1.136 billion litres were sold in the first two days, all with the Social Fuel Seal, and 2.55 million litres on the following day.
Brazil's biodiesel auctions are organised to ensure that the legal requirement for at least 11% biodiesel in diesel sold at the pump (B11) is met. The 68th tender covers domestic biofuel supply from September 1 to October 31, 2019, ANP noted.
(BRL 1 = USD 0.247/EUR 0.223)